Which of the Following Occurs When a Previously Declared Dividend

question 50

Multiple Choice

Which of the following occurs when a previously declared dividend is paid?

• A)assets increase
• B)stockholders' equity increases
• C)liabilities decrease
• D)assets remain unchanged

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Definitions:

Income Distribution

The way in which a nation’s total earnings are spread among its population, affecting economic inequality.

Total Income

The aggregate amount of money earned or received by an individual or entity from all sources before any deductions.

Equality-Efficiency Trade-Off

The compromise between ensuring an equitable distribution of resources and reaching the highest level of economic efficiency.

Economic Efficiency

A measure of how well resources are allocated to maximize the production of goods and services.